Effectiveness of Internal Audit Function in Tanzania: A Case Study of Arusha Ddistrict Council.

This study is set to examine the effectiveness of internal audit function in local government authority, a case study of Arusha DC. The overall objective of the study was to evaluate the effectiveness of internal audit function in Arusha DC and factors related to internal audit effectiveness. The study was based on agency and institutional theories. These theories provided independent variables including auditor integrity, interest separation, competency, independency and top management support. The descriptive design was adopted alongside qualitative and quantitative approach. The population comprised of the employees working in Arusha DC. The sample size was 120 respondents, the unit of analysis being internal auditors, District planning officers, VEO, WEO and accountants, both primary and secondary data were used. This study observed that the internal audit function is not effective since top management, inadequate internal audit staff, and lack of training on part of the internal audit staff do not adequately support internal auditors. The study recommends the allocation of more resources to support recruitment of audit staff as well as support in periodic training